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44AD for partnership
while calculating the income under 44ad partner salary and interest is allowed as deduction? and 40(b) is applicable and also 40(b) disallowance is add back to presumptive income?
Replies (7)
Quick Summary
Presumptive income under 44AD is after allowing deductions under 40(b)...hence not allowed again
Due to omission of proviso to section 44AD(2) from the A.Y. 2018—19 payment of salary and interest shall not allowable as deduction.
Can you explain with exaxmple?
Suppose firm has calculated turnover to be 10 lacs and assuming 8% of profit i.e. 80000.
so this income will be deemed your income and partner remuneration and interest are already deemed to be considered in that so you don't have to deduct that again to arrive at profit.
hope I am clear
so this income will be deemed your income and partner remuneration and interest are already deemed to be considered in that so you don't have to deduct that again to arrive at profit.
hope I am clear
@ Jyotsna that there is no tax liability in the hands of partner
Partner liability will be there as it used to be earlier
Entires salary and interest received by the partner is taxable in the hands of partner? that is chance of double taxation?
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